7 Hot Stocks on Traders' Radars
From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.
Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.
While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for traders who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at seven of the highest-trending stock searches on Google.
With earnings season kicking into full gear this week, you can bet that earnings is a major driver of searches today. Here's a look at how these most-searched names are trading technically .
Nearest Resistance: $33
Nearest Support: $31.50
Semiconductor firm Texas Instruments (TXN) comes up first on our list of most-searched stocks this week, coming off the heels of the firm's first quarter earnings call after the close yesterday. The company reported earnings of 22 cents per shares, besting Wall Street's expectations of 17 cents.
In spite of a relatively small percentage change from yesterday, TXN is actually making a fairly broad swing in this afternoon's session -- one with big technical implications.
Texas Instruments has been trading in a sideways channel for the better part of 2012, and today's earnings reaction is forcing a test of support at $31.50. So far, TXN is holding up above $31.50 -- a very good thing for shareholders of this stock; a breakdown below that support level would spur a short signal in TXN.
Even though support's holding and earnings were positive yesterday, I'd recommend sitting on the sidelines at least until shares can overcome resistance at the 50-day moving average . That level has acted as a sort of ceiling for shares in the past.
Texas Instruments shows up on a list of 5 Chip Stocks JPMorgan Likes . Netflix
Nearest Resistance: $90